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What Is a CUSIP Number

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Nupur Wankhede

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A CUSIP number is a unique identifier assigned to securities, helping track and settle trades in the financial markets. It's essential for brokers, clearinghouses, and regulators, offering efficiency and clarity in identifying stocks, bonds, and other financial instruments.

Definition and Purpose of CUSIP Numbers

CUSIP stands for Committee on Uniform Securities Identification Procedures. It's a standardised 9-character alphanumeric code used primarily in the U.S. and Canada to uniquely identify securities like stocks and bonds.

Its main purposes are:

  • Security identification

  • Trade settlement facilitation

  • Regulatory tracking

  • Preventing trade errors

Most listed equities and bonds in the U.S. are assigned a CUSIP, making it a central part of the financial infrastructure.

Structure and Components of a CUSIP

A CUSIP number follows a 9-character format:

  1. Issuer Code (First 6 characters) – Identifies the company or issuer.

  2. Issue Number (Next 2 characters) – Denotes the type of security.

  3. Check Digit (Final character) – A computed digit to validate the code.

Example: 03783310 05

  • 037833 = Apple Inc.

  • 10 = Common stock

  • 5 = Check digit

History and Governance

The CUSIP system was developed in the 1960s by the American Bankers Association (ABA) to streamline security tracking. It's now governed and managed by CUSIP Global Services (CGS), operated by FactSet.

It was adopted as an ANSI standard to maintain consistency across financial institutions and exchanges.

What Information Does a CUSIP Number Convey

A CUSIP number doesn’t reveal stock details directly but acts as a unique tag that:

  • Identifies the issuer and security type

  • Enables automated trade settlement

  • Tracks securities in brokerage accounts and depositories

  • Simplifies portfolio management systems

Uses and Limitations for Investors

Here’s how investors use CUSIPs and potential limitations to note:

Uses:

  • Helps brokers, fund managers, and clearing firms track holdings

  • Ensures accurate trade settlement and reporting

  • Assists in regulatory filings and audit trails

Limitations:

  • Not always accessible to retail investors

  • May not be used outside North America

  • Does not describe security features (like dividend yield or coupon)

How to Find a CUSIP Number

CUSIP numbers are generally accessible through the following:

  • Brokerage statements

  • Company filings (like prospectuses or 10-K forms)

  • Electronic Municipal Market Access (EMMA) for municipal bonds

  • CUSIP Global Services (CGS) (subscription-based)

CUSIP vs. ISIN vs. CINS

Here’s how CUSIP, ISIN, and CINS stack up against each other:

Identifier Region Format Use Case

CUSIP

U.S./Canada

9-character

Domestic securities

ISIN

Global

12-character

International use

CINS

International

9-character with special prefix

For non-U.S. securities

While CUSIP is local, ISIN incorporates it and expands usability globally. CINS is a CUSIP variant used for international issues.

Examples of CUSIP Numbers

  • Apple Inc. — 037833100

  • Microsoft Corp. — 594918104

  • New York City Bonds — vary by issue and maturity

These codes are used by institutional investors to ensure precise asset tracking.

Special Types: Dummy CUSIP and TBA CUSIP

  • Dummy CUSIPs: Temporary placeholders used before a security is finalised.

  • TBA CUSIPs: Used in mortgage-backed securities where specific securities are "To Be Announced."

These help streamline the trading of instruments not yet fully defined or issued.

Summary: Why CUSIPs Matter

CUSIP numbers are fundamental to:

  • Settlement automation

  • Trade accuracy

  • Security tracking across platforms

  • Standardising cross-broker operations

They are primarily relevant for institutions, while retail investors may encounter them less directly.

Disclaimer

This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.

Frequently Asked Questions

What does “CUSIP” stand for?

It stands for Committee on Uniform Securities Identification Procedures.

Nine characters: 6 for issuer, 2 for issue type, 1 check digit.

CUSIP Global Services (CGS), under ABA oversight, assigns and maintains them.

CUSIP numbers are widely used by institutional investors for identifying securities. Retail investors may have limited visibility depending on the source of information.

Most U.S.-listed stocks and bonds do. Exceptions include private placements.

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Hi! I’m Nupur Wankhede
BSE Insitute Alumni

With a Postgraduate degree in Global Financial Markets from the Bombay Stock Exchange Institute, Nupur has over 8 years of experience in the financial markets, specializing in investments, stock market operations, and project management. She has contributed to process improvements, cross-functional initiatives & content development across investment products. She bridges investment strategy with execution, blending content insight, operational efficiency, and collaborative execution to deliver impactful outcomes.

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